Jim Cramer is quick to respond to callers during the "Lightning Round" segment of his Mad Money program, and Thursday evening was no exception. One caller asked about Raytheon Technologies (RTX) : "This stock was too hot, but anywhere below $62, I'm a buyer," said Cramer.
Let's check the charts and indicators of RTX.
In this daily bar chart of RTX, below, we can see that prices were roughly cut in half in a few weeks from the middle of February to the middle of March. Prices recovered from near $40 to $75 and just short of the declining 200-day moving average line in the weeks since mid-March.
The On-Balance-Volume (OBV) line moved up with prices in April but gave it back in May and has made a bearish divergence into June. Prices have rallied to a new high for the move up but the OBV line has not.
The Moving Average Convergence Divergence (MACD) oscillator finally moved above the zero line this month but it looks like it can "rollover" again.
In this weekly bar chart of RTX, below, we can see a less than robust picture. Prices have rebounded in recent weeks but they have so far stopped short of the declining 40-week moving average line.
The weekly OBV line rebounded in May but is still in an intermediate-term downtrend. The MACD oscillator just crossed to the upside for a very late cover shorts buy signal.
In this daily Point and Figure chart of RTX, below, we can see that the software is still projecting a modest upside price target but of greater interest is the volume by price bars (left scale) showing good activity in the $62-$60 area.
Bottom line strategy: Jim Cramer and I have different styles of buying. Jim doesn't mind buying weakness while I like to buy strength. RTX could probe the $62-$60 area in the days/weeks ahead. Assuming prices hold I would then wait for a bottom reversal pattern from the Japanese candlesticks (e.g., a hammer, or bullish engulfing pattern) before probing the long side.